Full Text of HB3551 103rd General Assembly
HB3551eng 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | changing Sections 1-15.93, 30-30, 33-5, and 45-105 as follows: | 6 | | (30 ILCS 500/1-15.93) | 7 | | (Section scheduled to be repealed on January 1, 2026) | 8 | | Sec. 1-15.93. Single prime. "Single prime" means the | 9 | | design-bid-build procurement delivery method for a building | 10 | | construction project in which the Capital Development Board or | 11 | | a public institution of higher education, as defined in | 12 | | Section 1-13 of this Code, is the construction agency | 13 | | procuring 2 or more subdivisions of work enumerated in | 14 | | paragraphs (1) through (5) of subsection (a) of Section 30-30 | 15 | | of this Code under a single contract. The provisions of this | 16 | | Section are inoperative for public institutions of higher | 17 | | education on and after January 1, 2026. This Section is | 18 | | repealed on January 1, 2026.
| 19 | | (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20; | 20 | | 102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.)
| 21 | | (30 ILCS 500/30-30)
| 22 | | Sec. 30-30. Design-bid-build construction. |
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| 1 | | (a) The provisions of this subsection are operative | 2 | | through December 31, 2025. | 3 | | Except as provided in subsection (a-5), for
building | 4 | | construction contracts in excess of
$250,000, separate | 5 | | specifications may be prepared for all
equipment, labor, and | 6 | | materials in
connection with the following 5 subdivisions of | 7 | | the work to be
performed:
| 8 | | (1) plumbing;
| 9 | | (2) heating, piping, refrigeration, and automatic
| 10 | | temperature control systems,
including the testing and | 11 | | balancing of those systems;
| 12 | | (3) ventilating and distribution systems for
| 13 | | conditioned air, including the testing
and balancing of | 14 | | those systems;
| 15 | | (4) electric wiring; and
| 16 | | (5) general contract work.
| 17 | | Except as provided in subsection (a-5), the specifications | 18 | | may be so drawn as to permit separate and
independent bidding | 19 | | upon
each of the 5 subdivisions of work. All contracts awarded
| 20 | | for any part thereof may
award the 5 subdivisions of work | 21 | | separately to responsible and
reliable persons, firms, or
| 22 | | corporations engaged in these classes of work. The contracts, | 23 | | at
the discretion of the
construction agency, may be assigned | 24 | | to the successful bidder on
the general contract work or
to the | 25 | | successful bidder on the subdivision of work designated by
the | 26 | | construction agency before
the bidding as the prime |
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| 1 | | subdivision of work, provided that all
payments will be made | 2 | | directly
to the contractors for the 5 subdivisions of work | 3 | | upon compliance
with the conditions of the
contract.
| 4 | | For Beginning on the effective date of this amendatory Act | 5 | | of the 101st General Assembly and through December 31, 2025, | 6 | | for single prime projects: (i) the bid of the successful low | 7 | | bidder shall identify the name of the subcontractor, if any, | 8 | | and the bid proposal costs for each of the 5 subdivisions of | 9 | | work set forth in this Section; (ii) the contract entered into | 10 | | with the successful bidder shall provide that no identified | 11 | | subcontractor may be terminated without the written consent of | 12 | | the Capital Development Board; (iii) the contract shall comply | 13 | | with the disadvantaged business practices of the Business | 14 | | Enterprise for Minorities, Women, and Persons with | 15 | | Disabilities Act and the equal employment practices of Section | 16 | | 2-105 of the Illinois Human Rights Act; and (iv) the Capital | 17 | | Development Board shall submit an annual report to the General | 18 | | Assembly and Governor on the bidding, award, and performance | 19 | | of all single prime projects. | 20 | | Until December 31, 2023, for For building construction | 21 | | projects with a total construction cost valued at $5,000,000 | 22 | | or less, the Capital Development Board shall not use the | 23 | | single prime procurement delivery method for more than 50% of | 24 | | the total number of projects bid for each fiscal year. Until | 25 | | December 31, 2023, any Any project with a total construction | 26 | | cost valued greater than $5,000,000 may be bid using single |
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| 1 | | prime at the discretion of the Executive Director of the | 2 | | Capital Development Board. | 3 | | For contracts entered into on or after January 1, 2024, | 4 | | the Capital Development Board shall determine whether the | 5 | | single prime procurement delivery method is to be pursued. | 6 | | Before electing to use single prime on a project, the Capital | 7 | | Development Board must make a written determination that must | 8 | | include a description as to the particular advantages of the | 9 | | single prime procurement method for that project and an | 10 | | evaluation of the items in paragraphs (1) through (4). The | 11 | | Chief Procurement Officer must review the Capital Development | 12 | | Board's determination and consider the adequacy of information | 13 | | in paragraphs (1) through (4) to determine whether the Capital | 14 | | Development Board may proceed with single prime. Approval by | 15 | | the Chief Procurement Officer shall not be unreasonably | 16 | | withheld. The following factors must be considered by the | 17 | | Chief Procurement Officer in any determination: | 18 | | (1) The benefit that using the single prime | 19 | | procurement method will have on the Capital Development | 20 | | Board's ability to increase participation of | 21 | | minority-owned firms, woman-owned firms, firms owned by | 22 | | persons with a disability, and veteran-owned firms. | 23 | | (2) The likelihood that single prime will be in the | 24 | | best interest of the State by providing a material savings | 25 | | of time or cost over the multiple prime delivery system. | 26 | | The best interest of the State justification must show the |
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| 1 | | specific benefits of using the single prime method, | 2 | | including documentation of the estimates or scheduling | 3 | | impacts of any of the following: project complexity and | 4 | | trade coordination required, length of project, | 5 | | availability of skilled workforce, geographical area, | 6 | | project timelines, project budget, ability to secure | 7 | | minority, women, persons with disabilities and veteran | 8 | | participation, or other information. | 9 | | (3) The type and size of the project and its | 10 | | suitability to the single prime procurement method. | 11 | | (4) Whether the project will comply with the | 12 | | disadvantaged business and equal employment practices of | 13 | | the State, as established in the Business Enterprise for | 14 | | Minorities, Women, and Persons with Disabilities Act, | 15 | | Section 45-57 of this Code, and Section 2-105 of the | 16 | | Illinois Human Rights Act. | 17 | | If the Chief Procurement Officer finds that the Capital | 18 | | Development Board's written determination is insufficient, the | 19 | | Capital Development Board shall have the opportunity to cure | 20 | | its determination. Within 15 days of receiving approval from | 21 | | the Chief Procurement Officer, the Capital Development Board | 22 | | shall provide an advisory copy of the written determination to | 23 | | the Procurement Policy Board and the Commission on Equity and | 24 | | Inclusion. The Capital Development Board must maintain the | 25 | | full record of determination for 5 years. | 26 | | (a-5) Beginning on the effective date of this amendatory
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| 1 | | Act of the 102nd General Assembly and through December 31,
| 2 | | 2025, for single prime projects in which a public institution
| 3 | | of higher education is a construction agency awarding
building | 4 | | construction contracts in excess of $250,000,
separate | 5 | | specifications may be prepared for all equipment,
labor, and | 6 | | materials in connection with the 5 subdivisions of
work | 7 | | enumerated in subsection (a). Any public institution of higher | 8 | | education contract awarded for any part thereof may
award 2 or | 9 | | more of the 5 subdivisions of work together or
separately to | 10 | | responsible and reliable persons, firms, or
corporations | 11 | | engaged in these classes of work if: (i) the
public | 12 | | institution of higher education has submitted to the
| 13 | | Procurement Policy Board and the Commission on Equity and | 14 | | Inclusion a written notice that includes
the reasons for using | 15 | | the single prime method and an
explanation of why the use of | 16 | | that method is in the best
interest of the State and arranges | 17 | | to have the notice posted on the institution's online | 18 | | procurement webpage and its online
procurement bulletin at | 19 | | least 3 business days following submission to the Procurement | 20 | | Policy Board and the Commission on Equity and Inclusion; (ii) | 21 | | the
successful low bidder has prequalified with the public
| 22 | | institution of higher education; (iii) the bid of the
| 23 | | successful low bidder identifies the name of the
| 24 | | subcontractor, if any, and the bid proposal costs for each of
| 25 | | the 5 subdivisions of work set forth in subsection (a); (iv)
| 26 | | the contract entered into with the successful bidder provides
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| 1 | | that no identified subcontractor may be terminated without the
| 2 | | written consent of the public institution of higher education;
| 3 | | and (v) the successful low bidder has prequalified with the | 4 | | University of Illinois or with the Capital Development Board. | 5 | | For building construction projects with a total
| 6 | | construction cost valued at $20,000,000 or less, public
| 7 | | institutions of higher education shall not use the single
| 8 | | prime delivery method for more than 50% of the total number of
| 9 | | projects bid for each fiscal year. Projects with a total
| 10 | | construction cost valued at $20,000,000 or more may be bid
| 11 | | using the single prime delivery method at the discretion of
| 12 | | the public institution of higher education.
With respect to | 13 | | any construction project described in this
subsection (a-5), | 14 | | the public institution of higher education shall: (i) specify | 15 | | in writing as a public record that the
project shall comply | 16 | | with the Business Enterprise for
Minorities, Women, and | 17 | | Persons with Disabilities Act and the
equal employment | 18 | | practices of Section 2-105 of the Illinois
Human Rights Act; | 19 | | and (ii) report annually to the Governor, General Assembly, | 20 | | Procurement Policy Board, and Auditor
General on the bidding, | 21 | | award, and performance of all single
prime projects. On and | 22 | | after the effective date of this
amendatory Act of the 102nd | 23 | | General Assembly, the public
institution of higher education | 24 | | may award in each fiscal year
single prime contracts with an | 25 | | aggregate total value of no
more than $100,000,000. The Board | 26 | | of Trustees of the
University of Illinois may award in each |
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| 1 | | fiscal year single
prime contracts with an aggregate total | 2 | | value of not more than $300,000,000. | 3 | | (b) For public institutions of higher education, the The | 4 | | provisions of this subsection are operative on and after | 5 | | January 1, 2026.
For building construction contracts in excess | 6 | | of $250,000, separate specifications shall be prepared for all | 7 | | equipment, labor, and materials in connection with the | 8 | | following 5 subdivisions of the work to be performed: | 9 | | (1) plumbing; | 10 | | (2) heating, piping, refrigeration, and automatic | 11 | | temperature control systems, including the testing and | 12 | | balancing of those systems; | 13 | | (3) ventilating and distribution systems for | 14 | | conditioned air, including the testing and balancing of | 15 | | those systems; | 16 | | (4) electric wiring; and | 17 | | (5) general contract work. | 18 | | The specifications must be so drawn as to permit separate | 19 | | and independent bidding upon each of the 5 subdivisions of | 20 | | work. All contracts awarded for any part thereof shall award | 21 | | the 5 subdivisions of work separately to responsible and | 22 | | reliable persons, firms, or corporations engaged in these | 23 | | classes of work. The contracts, at the discretion of the | 24 | | construction agency, may be assigned to the successful bidder | 25 | | on the general contract work or to the successful bidder on the | 26 | | subdivision of work designated by the construction agency |
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| 1 | | before the bidding as the prime subdivision of work, provided | 2 | | that all payments will be made directly to the contractors for | 3 | | the 5 subdivisions of work upon compliance with the conditions | 4 | | of the contract. | 5 | | (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20; | 6 | | 102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.)
| 7 | | (30 ILCS 500/33-5)
| 8 | | Sec. 33-5. Definitions. In this Article:
| 9 | | "Construction management services" includes:
| 10 | | (1) services provided in the planning and | 11 | | pre-construction phases of a
construction project | 12 | | including, but not limited to, consulting with,
advising, | 13 | | assisting, and making recommendations to the Board and
| 14 | | architect, engineer, or licensed land surveyor on all | 15 | | aspects
of planning for project construction; reviewing | 16 | | all plans and
specifications as they are being developed | 17 | | and making recommendations
with respect to construction | 18 | | feasibility, availability of material and
labor, time | 19 | | requirements for procurement and construction, and
| 20 | | projected costs; making, reviewing, and refining budget | 21 | | estimates based
on the Board's program and other available | 22 | | information; making
recommendations to the Board and the | 23 | | architect or engineer
regarding the division of work in | 24 | | the plans and specifications to
facilitate the bidding and | 25 | | awarding of contracts; soliciting the
interest of capable |
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| 1 | | contractors and taking bids on the project;
analyzing the | 2 | | bids received; and preparing and maintaining a progress
| 3 | | schedule during the design phase of the project and | 4 | | preparation of a
proposed construction schedule; and
| 5 | | (2) services provided in the construction phase of the | 6 | | project
including, but not limited to, maintaining | 7 | | competent supervisory staff
to coordinate and provide | 8 | | general direction of the work and progress
of the | 9 | | contractors on the project; directing the work as it is | 10 | | being
performed for general conformance with working | 11 | | drawings and
specifications; establishing procedures for | 12 | | coordinating among the
Board, architect or engineer, | 13 | | contractors, and construction
manager with respect to all | 14 | | aspects of the project and
implementing those procedures; | 15 | | maintaining job site records
and making appropriate | 16 | | progress reports; implementing labor policy
in conformance | 17 | | with the requirements of the public owner; reviewing
the | 18 | | safety and equal opportunity programs of each contractor | 19 | | for
conformance with the public owner's policy and making
| 20 | | recommendations; reviewing and processing
all applications | 21 | | for payment by involved contractors and material
suppliers | 22 | | in accordance with the terms of the contract; making
| 23 | | recommendations and processing requests for changes in the | 24 | | work and
maintaining records of change orders; scheduling | 25 | | and conducting job
meetings to ensure orderly progress of | 26 | | the work; developing and
monitoring a project progress |
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| 1 | | schedule, coordinating and expediting
the work of all | 2 | | contractors and providing periodic status reports to
the | 3 | | owner and the architect or engineer; and establishing and
| 4 | | maintaining a cost control system and conducting meetings | 5 | | to review
costs.
| 6 | | "Construction manager" means any individual, sole
| 7 | | proprietorship, firm, partnership, corporation, or other legal | 8 | | entity
providing construction management services for the | 9 | | Board and
prequalified by the State in accordance with 30 ILCS
| 10 | | 500/33-10.
| 11 | | "Board" means the Capital Development Board or, to the | 12 | | extent that the services are to be procured by for a public | 13 | | institution of higher education, the public institution of | 14 | | higher education.
| 15 | | (Source: P.A. 102-1119, eff. 1-23-23.) | 16 | | (30 ILCS 500/45-105) | 17 | | Sec. 45-105. Bid preference for Illinois businesses. | 18 | | (a) (Blank). For the purposes of this Section: | 19 | | "Illinois business" means a contractor that: (i) is | 20 | | headquartered in Illinois and providing, at the time that an | 21 | | invitation for a bid or notice of contract opportunity is | 22 | | first advertised, construction or construction-related | 23 | | professional services for Illinois-based projects; (ii) | 24 | | conducts meaningful day-to-day business operations at a | 25 | | facility in Illinois that is the place of employment for the |
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| 1 | | majority of its regular, full-time workforce; (iii) holds all | 2 | | appropriate State licenses; and (iv) is subject to applicable | 3 | | State taxes. "Illinois business" does not include any | 4 | | subcontractors. | 5 | | "Illinois-based project" means an individual project of | 6 | | construction and other construction-related services for a | 7 | | construction agency that will result in the conduct of | 8 | | business within the State or the employment of individuals | 9 | | within the State. | 10 | | (b) It is hereby declared to be the public policy of the | 11 | | State of Illinois to promote the economy of Illinois through | 12 | | the use of Illinois businesses for all State construction | 13 | | contracts. | 14 | | (c) Construction agencies procuring construction and | 15 | | construction-related professional services shall make | 16 | | reasonable efforts to contract with Illinois businesses. | 17 | | (d) Beginning in 2022, each construction agency shall | 18 | | submit a report to the Governor and the General Assembly by | 19 | | September 1 of each year that identifies the Illinois | 20 | | businesses procured by the construction agency, the primary | 21 | | location of the construction project, the percentage of the | 22 | | construction agency's utilization of Illinois businesses on | 23 | | the project as a whole, and the actions that the construction | 24 | | agency has undertaken to increase the use of Illinois | 25 | | businesses. | 26 | | (e) In procuring construction and construction-related |
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| 1 | | professional services for projects with a total value that | 2 | | exceeds the small purchase maximum established by Section | 3 | | 20-20 of this Code with a total construction cost of more than | 4 | | $100,000 , construction agencies shall provide a bid preference | 5 | | to a responsive and responsible bidder that is an Illinois | 6 | | business as defined in this Section. The construction agency | 7 | | shall allocate to the lowest bid by an Illinois business that | 8 | | is responsible and responsive any responsible bidder that is | 9 | | an Illinois business a bid preference of 4% of the contract | 10 | | base bid. This subsection applies only to projects where a | 11 | | business that is not an Illinois business submits a bid. | 12 | | (f) This Section does not apply to any contract for any | 13 | | project for which federal funds are available for expenditure | 14 | | when its provisions may be in conflict with federal law or | 15 | | federal regulation.
| 16 | | (g) As used in this Section, "Illinois business" means a | 17 | | contractor that is operating and headquartered in Illinois and | 18 | | providing, at the time that an invitation for a bid or notice | 19 | | of contract opportunity is first advertised, construction or | 20 | | construction-related professional services, and is operating | 21 | | as: | 22 | | (1) a sole proprietor whose primary residence is in | 23 | | Illinois; | 24 | | (2) a business incorporated or organized as a domestic | 25 | | corporation under the Business Corporation Act of 1983; | 26 | | (3) a business organized as a domestic partnership |
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| 1 | | under the Uniform Partnership Act of 1997; | 2 | | (4) a business organized as a domestic limited | 3 | | partnership under the Uniform Limited Partnership Act of | 4 | | 2001; | 5 | | (5) a business organized under the Limited Liability | 6 | | Company Act; or | 7 | | (6) a business organized under the Professional | 8 | | Limited Liability Company Act. | 9 | | "Illinois business" does not include any subcontractors. | 10 | | (Source: P.A. 102-721, eff. 1-1-23 .) | 11 | | Section 10. The Design-Build
Procurement Act is amended by | 12 | | changing Section 10 as follows: | 13 | | (30 ILCS 537/10) | 14 | | (Section scheduled to be repealed on January 1, 2026)
| 15 | | Sec. 10. Definitions. As used in this Act:
| 16 | | "State construction agency" means the Capital Development | 17 | | Board or, in the case of a design-build procurement by for a | 18 | | public institution of higher education, the public institution | 19 | | of higher education.
| 20 | | "Delivery system" means the design and construction | 21 | | approach used to develop
and construct a project.
| 22 | | "Design-bid-build" means the traditional delivery system | 23 | | used on public
projects in this State that incorporates the | 24 | | Architectural, Engineering, and
Land Surveying Qualification |
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| 1 | | Based Selection Act (30 ILCS 535/) and the
principles of | 2 | | competitive selection in the Illinois Procurement Code (30 | 3 | | ILCS
500/).
| 4 | | "Design-build" means a delivery system that provides | 5 | | responsibility within a
single contract for the furnishing of | 6 | | architecture, engineering, land surveying
and related services | 7 | | as required, and the labor, materials, equipment, and
other | 8 | | construction services for the project.
| 9 | | "Design-build contract" means a contract for a public | 10 | | project under this Act
between the State construction agency | 11 | | and a design-build entity to furnish
architecture,
| 12 | | engineering, land surveying, and related services as required, | 13 | | and to furnish
the labor, materials, equipment, and other | 14 | | construction services for the
project. The design-build | 15 | | contract may be conditioned upon subsequent
refinements in | 16 | | scope and price and may allow the State construction agency to
| 17 | | make
modifications in the project scope without invalidating | 18 | | the design-build
contract.
| 19 | | "Design-build entity" means any individual, sole | 20 | | proprietorship, firm,
partnership, joint venture, corporation, | 21 | | professional corporation, or other
entity that proposes to | 22 | | design and construct any public project under this Act.
A | 23 | | design-build entity and associated design-build professionals | 24 | | shall conduct themselves in accordance with the laws of this | 25 | | State and the related provisions of the Illinois | 26 | | Administrative Code, as referenced by the licensed design |
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| 1 | | professionals Acts of this State.
| 2 | | "Design professional" means any individual, sole | 3 | | proprietorship, firm,
partnership, joint venture, corporation, | 4 | | professional corporation, or other
entity that offers services | 5 | | under the Illinois Architecture Practice Act of
1989 (225 ILCS | 6 | | 305/), the Professional Engineering Practice Act of 1989 (225
| 7 | | ILCS 325/),
the Structural Engineering Licensing Act of 1989 | 8 | | (225 ILCS 340/), or the
Illinois Professional
Land Surveyor | 9 | | Act of 1989 (225 ILCS 330/).
| 10 | | "Evaluation criteria" means the requirements for the | 11 | | separate phases of the
selection process as defined in this | 12 | | Act and may include the specialized
experience, technical | 13 | | qualifications and competence, capacity to perform, past
| 14 | | performance, experience with similar projects, assignment of | 15 | | personnel to the
project, and other appropriate factors. Price | 16 | | may not be used as a factor in
the evaluation of Phase I | 17 | | proposals.
| 18 | | "Proposal" means the offer to enter into a design-build | 19 | | contract as submitted
by a design-build entity in accordance | 20 | | with this Act.
| 21 | | "Public institution of higher education" has the meaning | 22 | | ascribed in subsection (f) of Section 1-13 of the Illinois | 23 | | Procurement Code. | 24 | | "Request for proposal" means the document used by the | 25 | | State construction agency
to solicit
proposals for a | 26 | | design-build contract.
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| 1 | | "Scope and performance criteria" means the requirements | 2 | | for the public
project, including but not limited to, the | 3 | | intended usage, capacity, size,
scope, quality and performance | 4 | | standards, life-cycle costs, and other
programmatic criteria | 5 | | that are expressed in performance-oriented and
quantifiable | 6 | | specifications and drawings that can be reasonably inferred | 7 | | and
are suited to allow a design-build entity to develop a | 8 | | proposal.
| 9 | | (Source: P.A. 102-1119, eff. 1-23-23.)
| 10 | | Section 99. Effective date. This Act takes effect January | 11 | | 1, 2024.
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